4.4 Double taxation treatment
To avoid double taxation there are two methods:
Exemption : Income received from entities (dividends, capital gains, profits from permanent establishments, etc.) is not included in the tax base of the entity that receives them. That is, such income is taxed exclusively at the headquarters of the entity that generates it and, when it is received by another taxpayer, no additional taxation occurs there.
Imputation : The indicated income is integrated into the tax base of the entity that receives it, deducting from its full quota a certain amount paid as tax of the same nature, in order to avoid double taxation.